Donald Trump’s Administration started to prepare a new round of pressure on China which will involve not only Treasury and Trade Department but also Pentagon and National Security Council.
According to Axios report with reference to the White House sources, Beijing will be blamed in a hostile activity against American companies, intellectual property stealing, cyber attacks and elections intervention.
As a response to China’s refusal to renew trade negotiations under the pressure of sanctions in the upcoming several weeks, a ‘tone of data’ will be published about Chinese pernicious activity related to the government sector and private companies, according to a government official’s talk to Axios. He also noticed that the published data will become the base for additional measures.
New import tariffs for Chinese goods going to the U.S. were implemented on Monday with the overall turnover of 200 billion dollars per year. The tariffs will be at 10% level initially and they will be increased up to 25% starting from January 1. China threatened to impose replying measures for American export in the volume of $60 billion including a 10% tariff for LNG. Trump promised to add more sanctions for $267 billion goods turnover for all of the Chinese goods imported to the U.S.
According to the Wall Street Journal data, Chinese officials cancelled trade negotiations which were supposed to start this week with the Vice Premier Minister of the State Council Liu Hae as the head of the delegation. “We can not provide negotiations under the threat of sanctions”, - this is the official Beijing position, according to state agency Xinhua quote.
Current situation around new sanctions is developing in accordance to the chain reaction base: new round for $200 billion threat from Trump became an answer for $50 billion announcement by China which was a mirror reaction for the U.S. first phase of import tariffs, ING economist Kevin Nightly reminded. He also noted that if Trump would escalate tariffs to the limit, 4.5% of the worldwide trade volume will be imposed by the tensions. This would become a new hit for emerging markets and export-oriented countries which have already suffered a massive capital outflow and local currencies decline recently, Bank of America strategies write. India and China are the largest oil importers and these are the only countries in the world where the oil demand keeps growing.